Board of Regents Policy Manual

Official Policies of the University System of Georgia

9.1.1 Definitions

The term “Real Estate” has the same meaning as “Real Property” and includes land and anything permanently affixed to or growing upon the land; all rights issuing out of, annexed to, and exercisable within or about land; and any estate or interest in land.

The term “Facility” or “Facilities” includes buildings; structures; University System of Georgia (USG) institution grounds; all outdoor areas of a USG institution, including streets, entrances, gates, and landscape features such as quadrangles, gardens, lakes, fountains, and fields; athletic venues; and improvements of all types.

The term “Property” includes both Real Property and Facilities.

The Term “Property Activity” or “Property Activities” includes all activities related to Property such as planning; acquisition; development, including design, construction, and renovation; management; operations; use; and disposition.

9.1.2 Portfolio Management and Utilization

The Board of Regents shall hold title to the Property of each USG institution so that each institution shall receive the use and benefit of the Property devoted to its use. In no event shall the Property of one institution be subject to the liabilities or obligations of any other institution, but the Board of Regents may utilize the Property, educational or otherwise, of one institution for the advancement or assistance of another.

The Board shall act as good stewards of the Property held in their trust. The USG chief facilities officer shall be responsible for the management of the Property on behalf of the Board of Regents and shall assist the Board in maximizing the long-term utility of the Property to accomplish the educational mission of the University System. The Board of Regents, the Chancellor, or the USG chief facilities officer may require USG institutions to provide reports related to USG Property.

9.1.3 Procedures, Standards, and Guidelines

The USG chief facilities officer is responsible for establishing standards and guidelines for Property Activities. A complete list of current standards and guidelines will be accessible on the USG web site.

The USG chief facilities officer shall work with the Georgia Department of Law to make available standard forms of agreement, contracts, and other templates of legal documents that might expedite or facilitate Property Activities.

9.1.4 Real Estate Delegation of Authority

Unless specifically designated otherwise, the Chancellor delegates the authority that he or she has under Section 9 of this Policy Manual to the USG chief facilities officer. The authorization may not be further delegated to USG institutions.

When acting with delegated authority for public private venture transactions and USG real property transactions in the name of and on behalf of the Board of Regents, USG officials may execute and deliver documents and take other actions as, in the judgment of such officials, may be necessary, proper, convenient, or required in order to carry out the intent of authority delegated to those officials.

9.10.1 Leasing Authority as Tenant

The Chancellor and the University System of Georgia (USG) chief facilities officer may execute documents and take other actions in the name of, under the Seal of, and on behalf of the Board of Regents of the University System of Georgia without prior approval by the Board any and all rental agreements, supplemental agreements, and subrental agreements in which the Board of Regents is named as the landlord of the property rented and where the total rent to be paid by the Board does not exceed the sum of $25,000 per month during the initial term and $35,000 per month during any subsequent renewal term.

The USG chief facilities officer will periodically report to the Board of Regents on lease transactions conducted within his or her delegated authority.

9.10.2 Leasing as Tenant

Currently-owned USG space should be utilized with the greatest efficiency and USG institutions may lease space only when it is appropriate to do so given the nature of the space needed, location of programs, and the space demands on the campus.

Institutions must adequately review each leasing decision to ensure that leased space is sought only when it is more economical to lease than build additional space and:

There is no appropriate space available on campus;
The program requires an off-campus site;
No other campus has appropriate space that may be used; or,
There are other extraordinary circumstances that require leasing.

Institutions are charged with ensuring that they obtain the best rental rates in the area where leasing is to occur, negotiate the highest level of savings over the initial and subsequent lease terms, and periodically review all leased space against the above criteria to ensure that the leased space is still needed.

Property to which title is held by the Georgia Building Authority and that is leased to the USG cannot be subleased or rented, but may be licensed to an outside party for use for a purpose consistent with the mission of the institution in return for out-of-pocket costs for utilities and custodial services.

9.10.3 Reporting of Leases as Tenant

USG institutions are to report all leased space to the USG chief facilities officer upon request and as needed to allow him or her to exercise oversight on leasing activity.

9.11.1 Sustainability, Efficiency, and Effectiveness

The Board of Regents is committed to providing sustainability leadership through responsible stewardship of the state’s natural and physical resources in order to advance economic vitality, ecological integrity, and social well-being through continuous improvement in campus operations thereby enhancing each institution’s education, research, and service missions.

Each University System of Georgia (USG) institution shall:

Manage natural and fiscal resources in a responsible and balanced way that intentionally reduces negative environmental impacts, restores natural systems, and promotes long-term prosperity;
Design, construct, operate, and maintain facilities in consideration of the environmental, social and economic systems on which our campuses depend;
Remain committed to the implementation of best practices related to buildings, climate, energy, food systems, grounds, purchasing, renewable resources, transportation, waste streams, and water;
Create a culture of sustainability in thought and action by promoting awareness, encouraging participation, and leading by example; and,
Engage in measures to maximize and improve the quality of life within the communities we serve.

Responsibility for overall implementation lies with the institution President, but students, faculty, and staff share in the responsibility to promote these principles. Campuses, as living, learning laboratories, will bring about transformative change for the future generations of the State of Georgia. The USG chief facilities officer shall periodically highlight sustainability achievements and best practices to the Board.

9.11.2 [Reserved]

[Reserved]

9.11.3 Major Repairs and Rehabilitation

The Major Repairs and Rehabilitation Program (MRR) is a state-funded capital renewal program for state-owned USG facilities. USG institution participation in the MRR program shall be in accordance with the requirements of the USG MRR Procedures and Guidelines.

The Chancellor may allocate to USG institutions, without prior approval of the Board, emergency or contingency MRR funds in amounts not to exceed $500,000 for any one project. The USG chief facilities officer is authorized to allocate to USG institutions, without prior approval of the Board, emergency or contingency MRR funds in amounts not to exceed $250,000 for any one project.

9.11.4 Environmental and Occupational Safety

The Board of Regents is committed to providing a safe working and learning environment and supporting environmentally sound practices. Each institution shall, at a minimum, comply with applicable environmental and occupational safety laws and regulations. In the absence of specific laws or regulations, each institution should follow industry standards and good management practices.

Each institution shall maintain policies and procedures to comprehensively integrate occupational safety and environmental considerations. Institutions shall ensure that environmental and occupational safety program activities are performed by appropriated qualified practitioners.

The USG chief facilities officer shall develop standards, guidelines, and processes to promote, support, and assess the implementation of environmental and occupational safety management programs and initiatives.

The USG chief facilities officer shall require institutions to provide environmental and occupational safety performance data and shall periodically report such data to the Board.

9.2.1 Campus Master Planning

Each University System of Georgia (USG) institution shall develop and maintain a master plan for campus development in consultation with the USG chief facilities officer. Institution presidents shall ensure that a current copy of the institution’s master plan is on file at the System Office. The USG chief facilities officer shall periodically inform the Board of institution planning efforts, including campus master planning.

9.2.2 Master Planning Services

Master planning for campus development combines short- and long-range focus; integrates multiple facilities, systems, and functions; and is typically comprehensive in scope. Institutions shall utilize qualified professionals for master planning related activities. In most cases, effective master planning requires the assistance of consultants. Institutions procuring consulting services for master planning related activities shall obtain prior approval from the USG chief facilities officer.

9.2.3 System Capital Plan

The Board of Regents shall periodically adopt a multi-year capital plan upon the recommendation of the Chancellor with the goal of meeting comprehensive system needs within the context of funding availability. Project evaluation is informed by system and institution strategic plans, facility condition and space utilization data, institution master plans, and other factors. The capital plan provides a foundation for the System’s annual State capital budget request.

The USG chief facilities officer shall make periodic requests to institutions to provide new and updated capital plan proposals and related information.

To provide instruction at an off-campus site, University System of Georgia (USG) institutions must first seek approval of the proposed academic instruction or program in accordance with the Board of Regents’ Policy on Academic Approval for Off-Campus Instructional Sites. Institutions shall not initiate requests for new off-campus instructional facilities prior to the approval of related academic proposals unless authorized by the Chief Academic Officer to proceed with a facility proposal concurrently with the academic review process.

Off-campus instructional facilities that are proposed to be controlled and exclusively occupied by the institution must be approved in accordance with the Board of Regents’ policies on Facilities. Where applicable, facility proposals must be submitted for Integrated Review in accordance with the requirements of Board Policy.

Space occupied non-exclusively (typically classrooms or meeting rooms for specific, limited periods at a nominal cost) may be used for scheduling approved instruction at other USG institutions and at sites controlled by outside entities (e.g., secondary schools, private universities, hospitals, local government facilities, corporate sites, military bases) without facilities approval.

9.4.1 Authorization by Board of Regents

All new buildings, major renovation, rehabilitation, or other projects, except routine maintenance, involving the campus or buildings of a University System of Georgia (USG) unit using funds from any source shall require authorization by the Board of Regents and shall be implemented in accordance with procedures established under the direction of the USG chief facilities officer.

The USG chief facilities officer is authorized to act, without prior approval of the Board of Regents, in the authorization of projects on behalf of the Board of Regents that are in accordance with the accepted campus master plan;, provided, however, that the authority so delegated shall be for projects that do not exceed the sum of $1,000,000 in initial construction costs.

The USG chief facilities officer may delegate any or all of the above authority, in accordance with Board of Regents policies, procedures, and guidelines, to individual USG institution presidents based upon an evaluation by the Chancellor or USG chief facilities officer of the ability of the institution to properly administer the delegated authority. Delegated authority may be withdrawn at the discretion of the Chancellor or the USG chief facilities officer.

9.4.2 Project Delivery Methods

The Board of Regents shall use appropriate construction delivery methods in accordance with the State Construction Manual and current industry practices. The USG chief facilities officer is responsible for developing related procedures and guidelines.

9.4.3 Contracting Authority

When qualifications-based selection (QBS) is used, and unless otherwise provided by these policies, the Chancellor and the USG chief facilities officer has authority to act as the contracting officer on behalf of the Board of Regents for construction and professional service contracts, including but not limited to architectural and engineering contracts, amendments, and change orders that do not exceed the sum of $5,000,000 for any one contractual obligation. When QBS is used for projects with an initial construction cost that exceeds $5,000,000, Board approval of the firm rankings is required prior to appointment of the professionals and execution of the construction contracts and related professional service contracts.

The Chancellor and the USG chief facilities officer is further authorized to act, on behalf of the Board of Regents and without prior approval of the Board of Regents, in a bid award of previously authorized construction projects.

The Chancellor or the USG chief facilities officer may delegate any or all of the above authority, in accordance with Board policies, and procedures and guidelines, to individual USG institutions based upon an evaluation by the Chancellor or the USG chief facilities officer of the ability of an institution to properly administer the delegated authority. Delegated authority may be withdrawn at the discretion of the Chancellor or the USG chief facilities officer.

The Chancellor and the USG chief facilities officer may execute documents and take or cause to be taken other actions that, in the judgment and reasonable discretion of such officials, may be necessary, proper, convenient or required in connection with the execution and delivery of such instruments, documents, or writings in order to carry out the intent of authority delegated.

9.4.4 Professional Services Procurement

Professional consulting services related to new construction, renovation and infrastructure projects, including but not limited to architects, engineers, landscape architects, interior designers, program managers, and facilities planners, shall be procured in accordance with the Building Project Procedures Manual.

9.4.5 Construction Services Procurement

[Reserved]

9.4.6 Furniture, Fixtures, and Equipment

In connection with the development of a new or renovated facility at a USG institution, the cost of the purchase of new essential furniture, fixtures, or equipment required to place the facility in operation shall be included in the total project budget of the facility.

The purchase of instructional, administrative, operational, or maintenance equipment for use in a new facility shall be the responsibility of the USG institution. The Chancellor and his or her staff will support the institution in securing aid that may be available through special or restricted funds included in the total funds of the project other than bond funds to assist in the purchase of such equipment. Purchasing regulations for the procurement of furniture, fixtures, and equipment will be published in the Business Procedures Manual.

9.4.7 Required Reporting

The USG chief facilities officer shall report to the Board of Regents annually about design and construction-related contracting using qualifications-based selections.

9.4.8 Debarment

A design professional, consultant, or contractor may be debarred from performing any work in any capacity for the Board of Regents for up to five years from the date of determination by the Chancellor based on the recommendation by a hearing panel comprised of the USG chief facilities officer or his or her designee and two other members appointed by the USG chief facilities officer. Procedures for debarment shall be published under guidelines and procedures issued by the USG chief facilities officer.

9.5.1 Sustainable Design and Life Cycle Costing

University System of Georgia (USG) buildings and grounds shall be planned and developed to provide long-term life cycle benefits. Each institution’s individual architectural character and landscape shall be maintained in a coordinated and consistent manner. Each institution shall employ design and construction concepts to allow for adaptive reuse, appropriate infrastructure, and flexibility to accommodate evolving technology.

State-funded educational buildings shall be designed and constructed to provide quality service for 50 or more years, ultimately serving the citizens of Georgia by achieving long-term life cycle benefits, a positive cost-to-benefit return on the initial investment.

9.5.2 Building Design Standards

Each USG institution shall develop standards that establish basic aesthetic expectations for construction, which are founded on and complementary to the USG’s preplanning guidelines. Institution standards shall establish the campus’s architectural theme and provide specificity sufficient to guide future construction activities to achieve harmony with the existing facilities while providing modern teaching and learning spaces. These standards shall ensure that the exterior architectural character of each building conveys the institution character in a cohesive, attractive, and timeless manner. Each institution shall develop an “architectural palette” (list of materials) to guide the selection of exterior materials for construction projects.

9.5.3 Modular and Temporary Buildings

The rental, lease, or purchase of modular or other temporary buildings and trailers is prohibited with the exception of trailers supporting an active construction project. Any other exception must be submitted to the USG chief facilities officer for review and approval in advance of the installation.

9.5.4 Campus Grounds and Landscape Standards

Each USG institution shall develop standards that establish basic expectations for landscaping and grounds, which are founded on and complementary to the USG’s preplanning guidelines, establish the institution’s landscape plan, and provide specificity sufficient to guide the planning and development of outdoor common space, including hardscape and signage, to achieve a cohesive and sustainable campus. These standards shall ensure that the campus grounds convey an attractive and inviting institution character. Each institution shall establish material and plant lists to guide the development of public green spaces, and plantings shall be predominantly indigenous, maintainable, and diverse.

Each institution shall have installed on its campus, and on each existing off-campus facility an appropriate number of properly designed and constructed, architecturally proper, and structurally sound exterior signs containing the name of the institution and identification of the institution as a part of the USG. Such signs shall be kept in good repair. Each exterior sign shall be able to be readily seen and quickly read from nearby public streets or highways.

Each institution shall fly the flag of the United States and the flag of Georgia from a building or flag pole on the campus of the institution.

9.5.5 Plaques

A plaque of bronze cast metal or other appropriate material will be installed in all major construction projects including new buildings, additions, and renovations noting the year completed, the Governor and members of the Board of Regents at the time of completion, other members of the Board of Regents serving since the project was first approved, the architect, and the contractor.

If deemed appropriate by the President of the institution, major contributors may be recognized by inclusion on the plaque or a separate plaque.

9.6.1 Maintenance and Custodial Standards

9.6.2 Live-On Requirements

For sound educational reasons, a President may require students to live on campus upon review and approval by the Chancellor.

9.6.3 Presidents’ Homes

Effective September 1, 2023, no USG President will be required to live in university housing, nor shall there be presidential housing at any USG institution.

9.6.4 Employee Housing

Employees provided with housing by a USG institution shall be charged at a rate that is no less than the approved and published rate charged to students. If the facility is designated for employee housing only, then the rate for the facility shall be competitive with the rates charged for privately owned comparable quarters in the immediate area and shall be charged equally to all employees.

If lodging is provided at no charge or at a discount from the published rate, then the value of the full rent amount or discount shall be treated as additional taxable compensation to the employee. Housing provided to employees who are required to live in campus housing as a condition of employment and in the interest of the institution shall not be deemed a taxable benefit.

9.6.5 Private Housing

No private housing or attendant facilities shall be constructed on USG properties without the expressed written consent of the Board of Regents.

Agreements may be entered into between USG institutions and private housing operators to establish the terms and conditions upon which students are housed in off-campus facilities only with the approval of the Board of Regents and provided that no financial or other restricting obligations, expressed or implied, are made on the part of the institutions or the Board of Regents.

Public Private Ventures (PPV) are essential to the implementation of strategic capital planning. Institutions shall manage assets financed with lease revenue bonds or loans in accordance with the requirements of the Business Procedures Manual. All PPVs require approval of the Board of Regents. Planning and requests for additional capital liability obligations for PPVs shall be conducted in accordance with Board policies on Strategic Capital Planning and Capital Project Authorization, Procurement, and Contracting.

The Board of Regents will work with cooperative organizations to provide facilities that will be self-supporting from revenue generated. The Board of Regents may ground lease real property to a cooperative organization for the purpose of providing facilities for use by an institution. The Board of Regents may rent facilities from cooperative organizations. The cooperative organization shall offer the facilities as a gift to the Board of Regents upon termination of financing obligations or within 35 years of occupancy, whichever occurs sooner. The Board of Regents cannot incur debt and will have no legal or moral obligation for any debt incurred by cooperative organizations for these facilities.

The Business Procedures Manual contains additional information on cooperative organizations. The USG chief facilities officer and the University System of Georgia (USG) chief fiscal officer will establish guidelines for USG institutions and cooperative organizations in relation to PPVs.

The Board of Regents shall assess administrative fees for all PPVs.

9.7.1 Capital Liability Capacity and Affordability

Capital liability capacity is an institution’s ability to service capital liabilities through operations and is driven by strength in income, cash flows, and overall financial leverage. Capital liability capacity is limited and directly impacts the affordability of education and services provided to USG students. Therefore, resources used to fund capital liability lease payments must be managed strategically from an overall system perspective and an institutional perspective.

The Board of Regents, the University System Office, and all USG institutions shall maintain their capacity to enter into capital lease agreements consistent with the underlying objectives of the PPV program. The Board of Regents designates the capital liability burden ratio as a generally accepted method of measuring, assessing, and limiting the USG’s and a USG institution’s authority to initiate and enter into new PPV projects and additional PPV capital lease arrangements.

The capital liability burden ratio reflects what percentage of an institution’s income is used to make capital lease payments, including PPV payments. The capital liability burden ratio shall consist of the percentage of total revenues in any given fiscal year that are used to pay an institution’s capital lease payments, including payments associated with the PPV program. The method for calculating the capital liability burden ratio shall formally be defined by the USG chief fiscal officer. The capital liability burden ratio shall not exceed five percent for the USG taken as a whole.

USG institutions shall strive to ensure that any new PPV projects submitted for approval do not cause the institution to exceed the institution’s five-percent threshold. Institutions may, consistent with approved strategic objectives and sound fiscal management, submit proposed PPV projects that would result in a capital liability burden ratio between five percent and seven percent. Institutions may submit a PPV project that would cause the institution to exceed the seven percent capital liability burden ratio but only under extraordinary circumstances. Under no circumstances shall an institution submit a project for approval that would result in the institution exceeding a ten percent capital liability burden ratio.

Adherence to these limits for proposed projects in no way guarantees approval of a PPV project.

9.7.2 Capital Liability Reserve Fund

The Board of Regents has established a Capital Liability Reserve Fund (the Fund) to protect the fiscal integrity of the USG, maintain the strongest possible credit ratings associated with PPV projects, and ensure that the Board of Regents can effectively support its long-term capital lease obligations.

The Fund shall be funded by all USG institutions participating in the PPV program and serve as a pooled reserve controlled and administered by the Board of Regents. The USG chief fiscal officer shall determine the amount to be deposited by each participating institution into the Fund. The Fund shall only be used to address significant shortfalls and only insofar as a requesting USG institution is unable to make the required PPV capital lease payment to the designated cooperative organization. The Fund will continue as long as the Board of Regents has rental obligations under the PPV program.

Fund distributions shall be made only with approval of the Chancellor and with prior notification to the Board of Regents. Requests for Fund distributions shall be made by the requesting institution’s President. Fund distributions shall only be used to make the required rental payment and only in those circumstances in which the institution has exhausted its capacity to fund the rental payment using allowable funding sources. Institutional requests shall detail the justification for the distribution, a plan to reimburse the Fund, and a plan to make the project self-liquidating on a going-forward basis. Nothing in this Policy Manual relieves institutions of the expectation to that they maintain adequate institutional reserves consistent with prudent fiscal management as needed to mitigate the risk of non-payment of PPV capital lease payments.

The USG chief fiscal officer shall establish procedures governing the Fund to include the form and manner of payments to the fund, payment schedules, methods of distribution, required payments to the Fund, payment plan, penalties, and redistribution of fund assets associated either with an institution’s cessation of participation in the PPV program or cessation of the PPV program for the USG. Each institution shall be treated equitably consistent with their level of PPV capital lease payments, levels of risk, and prudent fiscal management.

9.7.3 PPV Rental Agreements

9.7.3.1 Lease Rental Agreement Revisions: Refinancing

Capital lease payments associated with the USG PPV program made to cooperative organizations are designed, at a minimum, to support the required cooperative organization bond payment for principal and interest in addition to other costs as determined between the parties to the agreement. The portion of the PPV capital lease payment associated with the principal and interest is established consistent with the original terms of the revenue bond payment schedule required of the cooperative organization. A cooperative organization may, from time to time and at its own discretion, decide to refinance the original bond, revise the bond terms, or otherwise take action to manage risk and reduce costs associated with the bond debt.

Institutions shall monitor actions taken by cooperative organizations to refinance or otherwise alter the terms of the underlying bond debt. Insofar as the cooperative organization experiences a reduction in principal and interest payments, USG institutions shall ensure that they achieve a corresponding reduction in the associated capital lease payments equal to at least 50 percent of the cooperative organization’s savings. This reduction shall be achieved through renegotiating the rental agreement to which the USG institution and the cooperative organization are parties. USG institutions shall not renew rental agreements that have not been amended to reflect these savings. USG institutions should strive to ensure that the length of the original bond is not extended prior to agreeing to renew the underlying rental agreement; however, circumstances may arise when prudence would dictate otherwise.

USG institutions shall use any savings recognized through the renegotiated rental agreement to benefit students and to strengthen the PPV program at that institution. An institution may benefit students through reducing the current mandatory or special fees used to support the particular PPV facility, through eliminating a planned future fee increase, through improving services offered associated with the PPV facility, or through fully funding institutional PPV reserves. This list is not intended to be all-inclusive.

Institutions shall notify the USG chief fiscal officer of the planned use for realized savings.

9.7.3.2 Repair and Replacement Reserves

Rental agreements associated with the PPV program between the Board of Regents and a cooperative organization or its affiliated limited liability company shall contain provisions related to routine assessments of facility conditions, funding, disbursement, and disposition of repair and replacement reserves to enhance the long-term sustainability of PPV projects by ensuring that such reserves are used for capital repairs and replacements.

PPV rental agreements shall contain requirements that the landlord:

Fund and establish a repair and replacement reserve for capital repairs and replacements;
Provide funds from the repair and replacement reserve for a Facilities Condition Assessment Report (FCAR) performed in accordance with USG procedures and guidelines;
Exhaust any trustee surplus accounts held by the trustee or the foundation prior to exhausting the repair and replacement reserve; and,
Utilize any balances remaining in the repair and replacement reserve on necessary capital repairs and replacements prior to the termination of the rental agreement.

The cooperative organization, or its affiliated limited liability company, shall gift any remaining balances in the repair and replacement reserve to the institution upon termination of the rental agreement.

This policy is effective immediately upon approval for new PPV rental agreements and for all PPV renewals to the extent permitted by the existing loan agreements.

The USG chief fiscal officer, with the approval of the Chancellor, may, in the name and on behalf of the Board of Regents, take or cause to be taken any and all such further action as, in the judgment of such official, may be necessary, proper, convenient or required in connection with the execution and delivery of instruments, documents, or writings in order to carry out the intent of this policy for all PPV rental agreements.

9.8.1 Acquisition

The Chancellor and the University System of Georgia (USG) chief facilities officer may execute documents and take other actions in the name of, under the Seal of, and on behalf of the Board of Regents of the University System of Georgia without prior approval by the Board, any and all contracts, agreements, deeds, licenses, or other instruments related to the purchase or gift of real property where the purchase price or gift value of the real property does not exceed $1,000,000 and is at or below fair market value as determined by an independent and licensed real estate appraiser and where the property is not be subject to any adverse reversions, restrictions, covenants, or easements.

For gifts of property, a written opinion of value by a licensed real estate professional may be used in lieu of appraisal.

For acquisitions exceeding $1,000,000, at least two appraisals from independent and licensed real estate appraisers are required to validate the purchase price.

Board approval is required for any property acquired by condemnation, regardless of value.

9.8.2 Disposition

9.8.2.1 Sale of Property

The Chancellor and the University System of Georgia (USG) chief facilities officer may execute documents and take other actions in the name of, under the Seal of, and on behalf of the Board of Regents of the University System of Georgia without prior approval by the Board any and all contracts, agreements, deeds, licenses, or other instruments related to the disposition of real property where the sale, transfer, or exchange price of the real property does not exceed $1,000,000 and is at or above fair market value as determined by an independent and licensed real estate professional.

For dispositions where the sale, transfer, or exchange price exceeds $1,000,000, at least two appraisals from independent and licensed real estate appraisers are required to validate the purchase price.

9.8.2.2 Conveyances for Transportation Improvements

The Chancellor and the USG chief facilities officer may declare, without prior approval of the Board, that real property is no longer advantageously useful to any USG institution but only for the purpose of conveying title for public road improvements provided that no more than five acres of real property is to be conveyed.

The Chancellor and the USG chief facilities officer may request, without prior authorization of the Board, that the Governor execute a deed without warranty, quitclaim deed, or other deed of conveyance for real property for the purpose of conveying title for public transportation improvements provided that less than five acres of real property is conveyed.

9.8.2.3 Demolition

The Chancellor and the USG chief facilities officer may declare, without further approval of the Board, that a building or structure owned by the Board of Regents is no longer advantageously useful to any USG unit, for the sole purpose of authorizing demolition, and to request that the Governor issue an executive order authorizing demolition, provided that such building or structure is not eligible for a national or state historic register, and is either:

Vacant, and has been vacant, for an extended period of time;
Not a cost-effective candidate for repair based on a cursory examination;
Obsolete and no longer necessary to provide support for which it was constructed and no longer needed to support academic programs; or,
Consistent with the institution physical master plan and a Regents-approved capital improvement project.

In the event that a building or structure is declared eligible for a national or state historic register, Board action is required to declare the building or structure no longer advantageously useful to any USG unit for the sole purpose of authorizing demolition and to request that the Governor issue an executive order authorizing demolition.

9.8.3 Easements

The Chancellor and the USG chief facilities officer may declare, without prior approval of the Board, that real property is no longer advantageously useful to any USG institution but only to the extent and for the purpose of granting a non-exclusive easement. The Chancellor and the USG chief facilities officer may approve, without prior approval of the Board, the execution and delivery of non-exclusive easements or revocable license agreements or permits for improvements, utilities, and appurtenances to the utilities, above, across, or under Regents’ property by any entity to the extent necessary to serve or for the benefit of a USG institution.

9.8.4 Timber Sales

The Georgia Forestry Commission provides assistance to the USG and its institutions in the efficient and timely harvesting of timber growing or produced on USG lands. The Commission will designate and prepare for sale those timber products that should be harvested on USG property, which are declared to be surplus property that can no longer be advantageously used in the USG. The sale of all such timber products is declared to be in the USG’s best interest.

The USG chief facilities officer shall act as the liaison between the Board of Regents and the Georgia Forestry Commission in the management, sale, and disposition of timber and its byproducts for land not under the management of the School of Forestry and Natural Resources at the University of Georgia.

The proceeds from such timber sales, after deducting the cost and expenses thereof, shall be paid to the institution having jurisdiction of the lands from which the timber was cut.

On those lands owned by the Board of Regents and under the management of the School of Forestry and Natural Resources at the University of Georgia, the foresters of said school will designate and approve all sales of timber products and prepare the same for sale in keeping with sound and efficient forest management practices. All such sales shall be reported to the USG chief facilities officer.

9.8.5 Reporting

The USG chief facilities officer shall periodically update the Board of Regents on real estate acquisitions, dispositions, easements, and timber sales.

9.9.1 Leasing Authority as Landlord

The Chancellor and the University System of Georgia (USG) chief facilities officer may execute documents and take other actions in the name of, under the Seal of, and on behalf of the Board of Regents of the University System of Georgia without prior approval by the Board any and all rental agreements, supplemental agreements, and subrental agreements in which the Board of Regents is named as the landlord of the property rented and where the total rent to be paid to the Board does not exceed $25,000 per month during the initial term and $35,000 per month during any subsequent renewal term.

The USG chief facilities officer will shall periodically report to the Board of Regents on lease transactions where the Board of Regents is named as the landlord.

9.9.2 When to Lease as Landlord

Board of Regents’ owned space within the USG is should be utilized with the greatest efficiency. USG institutions should lease facilities to others only when:

There is sufficient excess capacity available on campus; and
The rental rates are fair and equitable; and
The use of the leased space is compatible with the institution mission or of benefit to the institution; or
There are other extraordinary circumstances that require leasing.

Institutions shall periodically review all space leased to others against the above criteria to ensure it is still appropriate and provide an annual report on leased space to the USG chief facilities officer who will exercise oversight on leasing activity.

9.9.3 Lease of Residential Facilities

The Chancellor is authorized to lease housing to groups external to the USG for a maximum term of one year under the following conditions:

Any option periods or extensions beyond one year must be approved by the Board.
Housing facilities will only be leased to outside parties when there is sufficient excess capacity and such lease will not impact the ability to house all institutional students desiring housing during the term of the lease.
Any lease to outside parties should be contemplated only after a good faith effort has been made to fill housing with USG students.
Any lease of housing must be compatible with the mission of the institution and must not be disruptive to the institution’s students occupying housing.
Leases for other than an institution’s own students will only be considered in priority order for cooperative interns, college students, education institutions, or not-for-profit education institutions. Leases to individuals or groups not in these categories will not be considered.
The lease rate will be at market rates for comparable housing in the vicinity and in no case will be less than the rate being charged to the institutional students for similar accommodations.
Payment for the lease will be made in full prior to the commencement of the term of the lease.

The President of each institution may recommend to the Chancellor or the USG chief facilities officer the leasing of residential facilities up to 2,000 square feet owned by the USG for fair market value rent and for a period of time up to two years at such times when such facilities are not in use by the institution. The President shall certify that such proposed lease of residential facilities does not adversely affect or impact the institution. Any revenues generated by such proposed lease of residential facilities will be used only for maintenance of the residential facility. Such leases shall be in writing and shall be consistent with guidelines promulgated by the Chancellor or the USG chief facilities officer.

9.9.4 Lease of Research Facilities

The following policies shall govern the leasing of laboratory and research facilities:

The President of each institution may recommend to the Chancellor the leasing of laboratory and research facilities owned by the USG to private businesses, companies, and corporations for the purpose of small business and economic development during times when such laboratory and research facilities are not in use by the institution.
The President shall certify that the proposed lease of such laboratories or facilities does not adversely affect or impact on the institutional or research programs at the institution or conflict with the academic and service mission of the institution.
Such leases shall be in writing and shall be consistent with guidelines promulgated by the Chancellor or the USG chief facilities officer.

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UNIVERSITY SYSTEM OF GEORGIA